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IBC Advanced Alloys Announces Entering Into New Term Loan and Amendment of Existing Credit Facilities
FRANKLIN, IN / ACCESSWIRE / August 28, 2023 / IBC Advanced Alloys Corp. ("IBC" or the "Company")...
About this update from Ibc Advanced Alloys Corp.
[{"type":"text","content":"IBC Advanced Alloys Announces Entering Into New Term Loan and Amendment of Existing Credit FacilitiesFRANKLIN, IN / ACCESSWIRE / August 28, 2023 / IBC Advanced Alloys Corp. (\"IBC\" or the \"Company\") (TSX-V:IB)(OTCQB:IAALF) is pleased to announce that certain of the Company's U.S. subsidiaries (the \"Subsidiaries\") have entered into a term loan (the \"Term Loan\") with Sallyport Commercial Finance, LLC (\"Sallyport\") and amendments to existing credit facilities (the \"Amendments\") with each of Sallyport and Iron Horse Credit, LLC (\"Iron Horse\") as further described below, resulting in access to US$7,000,000 in additional funding. Following repayment of the outstanding principal owed on the Company's 9.5% Senior Unsecured Debentures and 8.25% Senior Unsecured Convertible Debentures due on September 5, 2023 (collectively, the \"Debentures\"), the Company expects to have approximately US$4 million available for working capital.The Term Loan is governed by a real estate lien note between the Subsidiaries and Sallyport, pursuant to which Sallyport will provide the Subsidiaries with US$3,000,000, secured by a mortgage and assignment of rents granted by Nonferrous Products, Inc., one of the Subsidiaries, on a property in Indiana. The Term Loan will accrue interest at an annual rate equivalent to the prime rate plus 6.75%. The Term Loan has a term of nine months and is subject to customary terms for similar agreements in the United States manufacturing sector.The Amendments will upsize and amend the account sale and purchase agreement (the \"ASPA\") among Sallyport and the Subsidiaries, and the credit and security agreement (the \"Credit Agreement\") among Iron Horse and the Subsidiaries. The existing terms of the ASPA and the Credit Agreement are described in the Company's press release dated July 29, 2021. Pursuant to the Amendments, Sallyport will increase the maximum size of the credit facility to US$7,000,000 and will amend the structure of the facility from a disclosed factoring facility to a batch or \"bulk\" factoring facility, and Iron Horse will increase the maximum size of the credit facility to US$6,000,000.For more information on IBC and its innovative alloy products, go here.On Behalf of the Board of Directors:\"Mark Smith\"Mark A. Smith, Chairman# # #Contact:Jim Sims, Director of Investor and Public Relations+1 (30...